PM's Zero tolerance policy towards rent arrears

Discussion in 'Property Management' started by paguatao, 3rd Feb, 2013.

  1. paguatao

    paguatao Member

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    If there are any PMs out there, or anyone who knows how a PM works, I would appreciate some insight. My PM website says "zero tolerance policy ..." blah blah but what does it mean exactly?

    I found another website that outlined what they would do - reconcile the trust account every morning, day 1 of rent arrears, issue Form 1B etc etc.

    So I wanted to ask my PM what their policy is. But I also wanted to understand how the majority of PMs work ....

    My PM is very slack, I'm constantly on their back, I have to call them after getting my statement that shows tenant is 2 weeks late, they should call ME and let me know ... by the time I get the statement, it's already 2 weeks overdue and we all know how long and convoluted it is to evict a tenant.

    Even after I email them, they never answer me directly but I KNOW that they are slack. So if I can get them to stay on top of things, that would be awesome.

    Also when a lease is signed, it's usually general practice to ask tenants to pay 2 weeks rent in advance, is that right? But "The landlord must not ask for rent until the period covered by the previous payment is finished" so how does that all actually work?

    Bond - this doesn't increase when rent is increased, so if you have a tenant who is in arrears, then leaves without paying outstanding rent and leaves the property in bad shape (ie carpet needs cleaning) then you'll always be out of pocket. LL insurance only covers outstanding rent AFTER the first 4 weeks. And carpet cleaning isn't covered as malicious damage. So you're ALWAYS out of pocket and I'm SO SICK of it!:(

    If anyone has any advice that I can use to get my PM into shape, in terms of best practice - better to ask for rent every month, every 4 weeks or ....? And also remind me on the delays and length of time for processing a tenant in arrears, I would appreciate it.
     
  2. DaveM

    DaveM KFC Buyers Agent

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    Change PM .....
     
  3. jim1964

    jim1964 Part Time Sheep Farmer

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    You have to manage the managers.managers sack people like your PM.:eek:
     
  4. INVSTOR

    INVSTOR O+

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    Go onto docep website and most of your questions regarding rent will be answered. If you are still confused, call docep. I'm guessing it's Perth?
     
  5. bnicklin

    bnicklin Miner braddy

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    Same as ours down Secret harbour way. Farking lazy.
     
  6. datto

    datto Member

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    Jack the rent up on a regular basis if tenant is slack.

    Threaten the PM with the boot if they dont ship up.
     
  7. Dazz

    Dazz Banned

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    ....you're assuming of course the PM has control and influence over these things....

    My experience has been that good Tenants make PM's look good, and bad Tenants make PM's look bad....ipso facto, the PM's have very little influence whatsoever.

    I'd be looking at changing the Tenant out first....then the PM.

    The Tenant is the one causing the grief, not the PM....they are just shuffling the problem along to you, as all PMs do.
     
  8. Dazz

    Dazz Banned

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    With those two matey, my only suggestion is, you are playing the wrong game.
     
  9. buzzlightyear

    buzzlightyear Member

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    There seems to be a constant theme about PM's in WA on this forum. It seems there is a screaming gap in the market.
     
  10. INVSTOR

    INVSTOR O+

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    Maybe we should all send our complaints to authorities at the same time. It's really bad, and doesn't help that lazy PM's find it easier to work for the tenant and say everything is good and hand back all their bond.
     
  11. paguatao

    paguatao Member

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    It IS Perth, (SOR Kwinana area so that speaks for the quality of tenants). Rent was increased ($50 over last 3 years I guess) and tenant slowly declined in standards and rent payment.

    Not sure when my PM started the ball rocking to kick her out (I did email and asked for dates but their reply is always very non-specific - a special trait of the lazy PM??) so now we are left with the usual mess, loss of rent and having to look for new tenants.

    Definitely agree a tenant can reflect a PM as good/bad- and sometimes paying more to a PM does not necessarily mean they will do a better job.

    Just want to know how PM works, so I can ask them to be more "on the ball" in terms of reconciling the accounts, and whether they should be aware of rent arrears from day 1, or does it depend on when accounts are reconciled, or what ......
     
  12. INVSTOR

    INVSTOR O+

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    Each to their own but I find it one billion times easier to self manage than to deal with Perth PM's.
     
  13. INVSTOR

    INVSTOR O+

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    You would need to ask each individual agency about arrears
     
  14. paguatao

    paguatao Member

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    Been there, done that - had tenants who were 10000x worse.
     
  15. INVSTOR

    INVSTOR O+

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    Lol, fair enough!!
     
  16. skater

    skater Capitalist

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    Yes, I've noticed that as well. AND they are more expensive that Eastern States. It's the main reason I've not even been tempted to look at property in WA.
     
  17. kathryn d

    kathryn d Member

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    I'd wonder what the outcome would be if the landlord took the PM agency to small claims court, for neglect of duties, and for any out of pocket money they caused the landlord because of this.

    I guess it would depend on the judge.
     
  18. robboat

    robboat Member

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    PM and Real Estate agencies generally are "all care and no responsibility" when it comes to your property.
    Years ago I had 5 IPs in WA and ended up cashing in because management was too much trouble.
    I had specific instructions written for the PM and authorised amounts for minor repairs.

    The PMs often did not follow the instructions and this led to problems....I moved PMs.
    I tried to keep the IPs with the "PM of the Year" as there were fewer issues and she understood the instructions.

    REIWA has a long history of "all care and NO responsibility".......

    I self manage now and am happy - the problems are all of my own making.
     
  19. tang

    tang Member

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    Agreed
    Realmark commercial
    Have had bad experiences with their CPMs!!!!
    Change PMs- at the end of the day, unfortunately, the proeprty industry sets the bar so low when it comes to licensing!!!!
     
  20. INVSTOR

    INVSTOR O+

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    You can do a bond top up as rent increases. Bond variation form off the top of my head.


    Maybe you should attend all the final inspections to make sure stuff like carpet cleaning is done, and damage isn't classed as wear and tear. If I'm ever unsure I call Docep and check. It sounds like you need to really familiarise yourself with the rules. http://www.commerce.wa.gov.au/consu...operty_renting/Renting_and_tenancy/Landlords/